WASHINGTON -- U.S. Transportation Secretary Ray LaHood said today Detroit's proposed streetcar project won't be receiving a federal grant worth up to $25 million but is still in the running to receive that amount from other grant programs.

In a letter to the Roger Penske, chairman of the M-1 Rail group, LaHood said the group won't receive the grant it was hoping for under the Transportation Investment Generating Economic Recovery program because of lingering concerns about the project.

The group is proposing a $137-million streetcar line that would run 3.3 miles along Woodward from downtown to the New Center.

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